Legal Counselling

Vietnam: How is the repayment of public debt organized?

15:28, 07/09/2018

The Government of Vietnam issued Decree No. 94/2018/ND-CP on public debt management, which applies to the Ministry of Finance, ministries, ministerial agencies, Governmental agencies, People’s Committees of provinces, organizations and individuals relating to public debt management.

According to Vietnam’s new regulations, repayment of public debt shall be organized as follows:

1. With regard to Government debts:

- The Ministry of Finance shall set aside an amount in central government budget to repay debts;

- The Ministry of Finance shall fully pay off principals, interests and charges on schedule;

- For loans to be on-lent, the Ministry of Finance and intermediary borrowers authorized by the Ministry of Finance shall be responsible for recovering all principals, interests, charges and relevant fees.

2. With regard to provincial debts:

- People’s Committees of provinces shall set aside an amount in local government budget to repay debts;

- People's Committees of provinces shall fully pay off principals, interests and charges on schedule.

3. With regard to sovereign-guaranteed debts:

- Sovereign-guaranteed borrowers shall meet debt service as agreed in the loan contracts signed with their creditors and contracts for sovereign guarantee.

- Guarantees and guaranteed-borrowers must fulfill their repayment obligation in accordance with regulations in the Government Decree on provision and management of sovereign guarantee.

Decree No. 94/2018/ND-CP of Vietnam’s Government takes effect from July 01, 2018, replacing Decision No. 56/2012/QD-TTg.

- Thanh Lam -

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE

3 lượt xem

- This English translation is for reference purposes only and not a definitive translation of the original Vietnamese texts;
- Articles may be compiled from a variety of sources;
- Applicable Terms may have expired at the time you are reading;
- If you have any questions about the copyright of the article, please contact us via email banquyen@lawnet.vn